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A comparative study on engine performance and emissions (NOx, soot) formation has been carried out for the Volvo D12C diesel engine fueled by Rapeseed Methyl Ester, RME and conventional diesel oil. The fuel and combustion models used in this paper are the modifications of those described in [1–3]. The numerical results for different load cases illustrate that for both fuels nearly 100% combustion efficiency was predicted; in the case of RME, the cumulative heat release was compared with the RME LHV, 37.2 kJ/g. To minimize soot and NOx emissions, 25–30% EGR levels depending on the engine loads and different injection timings were analyses. To illustrate the optimal engine performance conditions, a special technique based on the time-transient parametric ϕ-T maps [4] has been used.